The size of the derivatives market is misleading. The figures represent notional amounts that means these amounts are not paid for in cash. A big share of these

The size of the derivatives market is misleading. The figures represent notional amounts that means these amounts are not paid for in cash. A big share of these derivatives are likely to be interest rate swaps where one counterparty receives a fixed interest rate and the other a floating one. The notional value of these contracts can easily go into the billions but the USD value which is settled each day (and effectively transferred between the counterparties) might only be about 100k (a one basis point change on 1 billion).